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COURSE OUTLINE
Unit 1: Fundamentals of Economics
Economics and Choice
 Chapter 1:The Economic Way of
Thinking
 Chapter 2: Economic Systems
 Chapter 3: The American Free
Enterprise
Unit 2: Microeconomics
Market Economies at Work
 Chapter 4: Demand
 Chapter 5: Supply
 Chapter 6: Demand, Supply, and
Prices
 Chapter 7: Market Structures
Unit 3:
Types of Business Organizations
 Chapter 8: Types of Business
Organizations
Unit 4: Macroeconomics
Money and Banking
 Chapter 10: Money and Banking
Unit 5:
Measuring and Monitoring Economic
Performance
 Chapter 12: Economic Indicators
and Measurements
 Chapter 13: Facing Economic
Challenges
Unit 6:
The Role of Government in the
Economy
 Chapter 14: Government
Revenue and Spending
 Chapter 15: Using Fiscal Policy
Unit 7:
The Global Economy
 Chapter 16: The Federal Reserve
and Monetary Policy
 Chapter 17: International Trade
Unit 8:
Personal Finance
 Chapter 11: Personal Finance &
Financial Markets
CP Economics Organizer
Chapter 2: Economic Systems
The Big Picture:
An economic system addresses scarcity by answering three fundamental questions: What should be produced? How should it be produced?
For whom will it be produced? There are three basic systems: traditional, command, and market. In traditional economies, economic
decisions are based on custom. The focus is on survival for all and material wealth is usually absent. In command economies, the government
makes all the decisions about how to answer the three fundamental questions. Socialism, which allows some private property, and
communism, which gives the government all ownership, are the two main types of command economies. A potential advantage of a
command economy is that it tries to provide for all members of society, including the sick and old. Command economies are inefficient and
lack political freedom. In a market economy, individual choice drives economic decisions and creates a circular flow of voluntary exchanges.
Market economies protect private property and promote specialization, the profit motive, consumer sovereignty, and competition. Incentives
such as profit make market economies efficient. Market economies have a high degree of political freedom. Disadvantage of market
economies include the lack of provision for public goods and lack of a safety net for the needy. Most economies today are mixed—traditional,
command, and market economies. Some former command economies, such as the former Soviet Union, are going through a transition from a
command to a market economy.
Unit Pacing:
Homework
____– Types of Economic Systems
____– Read p. 38-40
____ – 6 U.S. Broad Social and
Economic Goals
____–Read p. 42-46
____– The Circular Flow of Economic
Activity
____ –Read p. 48-55
____– RETEACHING ACTIVITY:
Market Economies
____– Chapter 2 Vocabulary Quiz &
TEST
Key Terms and Phrases:
(Answer Qs on Back)
____ – Chapter 2
Vocabulary
Quiz & TEST
1. Economic System
2. Traditional
3. Command
4. Market
5. Mixed
6. Private property
7. Contracts
8. Laissez faire
9. Competition
10. Voluntary exchange
11. Consumer Sovereignty
12. Profit motive
13. Economics
14. Specialization
15. Full employment
16. Social Security
17. Standard of living
18. Factor market
19. Product market
20. Circular Flow Market
21. Efficiency
22. Equity
23. Growth
24. Security
25. Stability
Essentials Questions:
GPS
1. What is the difference between traditional, market and command economies?
2. How do the 6 U.S. Economic goals relate to each other?
3. Explain the Circular Flow of Economic Activity.
1. SSEF4a
2. SSEF4b
3. SSEMI1a
Course Website: http://www.gocats.org
Show What You Know!
Milestone Practice Questions
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